The Reserve Bank of Australia (RBA) recently cut the cash rate by 0.25%, prompting many lenders to reduce their variable interest rates, potentially lowering your repayments.
The Moneysmart mortgage calculator can help you see how this change affects your payments and assist with planning.
If you're benefiting from the rate cut, consider using the extra cash to pay down credit card or buy now pay later debt, start a savings habit, or even keep paying the higher rate to pay off your mortgage faster. Every dollar counts, so plan how you can make the most of this extra money.
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Moneysmart tips: Is 2025 your year to thrive?
Kickstart 2025 with a financial reset
Decided that this year is the year you'll build a healthier relationship with money?
Getting on top of your finances is one of the most common new year's resolutions. And while more than half (52%) of Australians will set a financial goal for 2025, only about 1 in 8 (12%) will stick to it.
You don’t have to overhaul your life to achieve your financial goals. Even small changes can make a big difference over time.
Money saving tips
· You may be spending too much on streaming services. If you haven’t used a streaming service in months, it’s time to hit that unsubscribe button. Doing a budget can help you identify other expenses you might want to cut back on.
· Automate your savings to build an emergency fund. Set up a recurring transfer to your savings account – even $1 or $2 a day, if you can afford it, can help over time to set aside money for unexpected expenses that may come up.
· Your super is your income in retirement. Take five minutes when your next super statement arrives to review your balance, fees, and investment options. You can check MoneySmart’s handy guide on how to review your super is here to help.
· If you got into debt over the holiday period, make a plan to pay it off. It'll feel great to have it behind you.
Visit Moneysmart.gov.au for more simple, actionable tips you can take.
Spend Smarter This Christmas: Avoid the Holiday Budget Hangover
The festive season is a time for celebration, but it can also bring financial stress if you’re not careful with your spending. According to new research from Moneysmart, while 74% of people set a Christmas budget, only 29% stick to it. Many are turning to savings, credit cards, and Buy Now Pay Later (BNPL) services to cover their holiday expenses, which can lead to a post-Christmas financial hangover. If this sounds all too familiar, don’t worry—we’ve got you covered. With these simple tips and strategies, you can enjoy the holidays without the financial regret.
Set a realistic budget
Before you start shopping, decide how much you can afford to spend. Break it down into categories like gifts, food, decorations, travel and entertainment. Track your spending to stay on target.
Be aware of using credit
Pay with cash or debit card and avoid using things such as credit cards and or buy now pay later that you can’t afford. If you do use credit products, stick to what you can afford to repay in full. Consider balance transfers to save on interest but be mindful of fees and repayment deadlines.
Monitor your accounts regularly
Keep an eye on your credit card and bank statements during the holiday season. Report any suspicious transactions to your bank immediately.
Be aware of bad deals or scams
Watch for red flags like “too good to be true” prices, limited-time offers pressuring you to act quickly, or poorly rated or unknown online retailers. Stick to reputable stores, and research sellers before buying.
Get help if you need it
If you’ve gone over budget, take proactive steps to regain control. Create a repayment plan for any debt incurred, prioritising paying off high-interest balances first.
Moneysmart tips: A monthly e-newsletter offering free tools, tips and guidance
Avoid scams as you shop the sales
Online sales offer great deals and convenience, but they also come with the risk of scams. This article provides tips on how to identify potential scams and shop safely during online sales.
Interest-free doesn't mean cost-free
Interest-free deals allow you to pay for items over time, but failing to repay within the interest-free period can result in high charges.
Pay off and interest-free deal on time
Getting a pet this Christmas?
Before getting a pet, ensure they fit your budget and lifestyle, considering both the initial purchase and ongoing costs like food, grooming, vet care, and supplies.
How much it costs to own a dog or a cat
Tips for managing buy now pay later
Buy now, pay later services can be helpful for managing cash flow, but if not used cautiously, they can lead to financial trouble.
Develop an investment plan + Check before you invest + Have you got investing FOMO
Planning is the key to successful investing. Creating a plan will help you find investments that fit your investing time frame and risk tolerance, to help you reach your financial goals sooner.
Check the facts before you invest
Before you part with your money, check: Are they licensed? Can I explain how it works? Are there signs it could be a scam? What can I do if something goes wrong? Learn how.
Have you got investing FOMO?
If you're hearing a lot of buzz around a type of investment and don't want to miss out, STOP! It might be a hype-driven investment.
Moneysmart tips: Simple steps to manage your super
Your super isn't always top of mind when you're focused on juggling work, family life, and the many other responsibilities of adulting. But taking an active interest in your super now, can set you up for the lifestyle you want in the future.
New research from Moneysmart has revealed the concerning trend that nearly half (48%) of surveyed millennials admit they are not knowledgeable about maximising their super. That's why Moneysmart's new campaign aims to drive awareness about why focusing on superannuation earlier is good for your long-term financial health.
When it comes to your super, extra contributions are just one option for growing your future wealth. Check out these other ways to secure a better financial future.
Simple steps to manage your super
Check you're being paid the right amount of super
The super guarantee (SG) is now 11.5% of your income. To see how much your employer is paying you, look at your payslip or call your super fund.
How to calculate your super payments
Make sure your super fund can contact you
Your fund will use your email address and mobile number to send you important updates, including your annual statement. Reading your annual statement is a good way to stay connected with your super.
What to check in your annual statement
Check your insurance cover
Most super funds provide life cover and TPD insurance for their members. Make sure you're only paying for the insurance you need.
Tips for choosing insurance through super
Consider combining your super
Moving your super into one account makes your super easier to manage and saves on fees. You can transfer your super for free in a few easy steps.
How to check if you're eligible for low-fee banking
Choosing the right bank account and regularly checking the fees you're paying can help you look after and grow your money.
ASIC’s recent report found that more than 150,000 people on low incomes were in high-fee bank accounts, despite being eligible for a basic low-fee account.
Low-fee accounts are available if you qualify for a concession card issued by the Government. If this applies to you, ask your bank about their low-fee account options.
Downsizing in retirement
Decide whether downsizing your home is right for you.
Key points:
Pros
Cons
Costs
Alternatives
Impact on Age Pension or government benefits
Read full article here.
Be wary of cold callers offering financial advice
ASIC is urging consumers to hang up on cold callers and to scroll past social media click bait offering to help you compare and switch super funds.
If you switch super funds following contact from a cold caller, you can end up paying for financial advice that may not be right for you.
Get More From Your Super
ASIC recently reviewed the superannuation sector and found super funds and financial advisers could do more to monitor investments in super and communicate with members and clients about how their super is performing.
Key points:
How your super is invested
Investments in super impact your future lifestyle
Make the most of your super
Read the full article here.
Money tips in other languages
Resources to help newly arrived migrants understand how money works in Australia
Money and working in Australia
Budgeting and saving
Spending and paying bills
Spending and paying bills
Superannuation
Insurance
Beware of scams
Tax in Australia
Click here to read the full article.
Keep track of your super
How to read your annual super statement
Review your annual super statement to keep track of your super
Check your personal details are correct
Check your contributions
Review your investments and fees
Review your insurance and beneficiaries
Consolidate your super
Click here to read the full article.
2023 tax returns + Suspicious website alert + How CFDs work
Lodge online with myTax
You can lodge your return using myTax, the ATO's free online tax return. You need a myGov account linked to the ATO to lodge online. Returns lodged this way are usually processed within two weeks.
Lodging with myTax is easy and free. Most information from employers, banks, government agencies and health funds will be automatically included in your tax return by late July. You just check the information is correct, enter any income that isn't included, add any deductions you have, and then submit. MyTax will then calculate your tax for you.
The ATO has 'how-to' videos to help you lodge online using myTax.
Click here to read the full article.
Alert: Suspicious website – Do not deal with www.cambridgeassetmanagement.com
The operators of www.cambridgeassetmanagement.com are promoting various investment plans in leveraged financial products on the website. The operators do not have an Australian financial services (AFS) licence and are not authorised to operate a financial services business in Australia.
Key points
ASIC is alerting investors about suspicious ‘investment opportunities’ offered on www.cambridgeassetmanagement.com. The website is allegedly run by a Hong Kong entity, Cambridge Asset Management, that is operating out of Hong Kong.
The operators of the website are not licensed to provide financial services in Australia. That means Australian consumers are not protected.
ASIC is not associated with the operators of www.cambridgeassetmanagement.com and will never ask you to pay tax to withdraw your investment funds
Click here to read the full article.
Contracts for difference (CFDs)
CFDs let you speculate on short-term market movements. Like foreign exchange rates, share prices, stock market index levels, cryptocurrency rates or other underlying assets. Most people lose money trading CFDs.
Click here to read the full article.
How investments are taxed + Super contributions + Ponzi schemes
How investments are taxed
Lower tax on your investments can help you reach your financial goals sooner. But don't choose an investment based on tax benefits alone.
How investment income is taxed
Positive versus negative gearing
Tax-effective investments
Investing and your tax return
Ponzi schemes
Ponzi schemes are investment scams that pay existing investors with funds collected from new investors. There is no real investment.
Warning signs of a Ponzi scheme
How Ponzi schemes work
What to do if you have invested in a Ponzi scheme
Read full article here.
Turn up your scams radar + Manage living costs + Make a balance transfer work for you
Protect yourself from scams
Use this four-step guide to turn up your SCAM radar so you can spot a scammer and protect yourself. By keeping up to date with the latest scam trends, you can stay one step ahead of scammers
Step 1: STOP
Step 2: CHECK
Step 3: ACT
Step 4: MONEYSMART
Read full article here.
Manage the cost of living
Having a plan will help you feel more prepared when your living expenses increase. There's also support and services available if you're feeling overwhelmed.
Practical steps to help you manage living costs and keep on top of bills.
Make a plan
Get help if you need it
Read full article here.
Compare mortgage rates + Solar investment scam + Greenwashing
How much will your mortgage repayments be?
Use our calculator to compare different rates
Click here to read full article.
Scam alert: United Solar Investments
United Solar Investment promotes a suspicious scheme which claims to allow Australian consumers to purchase an interest in solar panel systems. The scheme is being promoted as a ‘financing of photovoltaic solar power generation’ offering unrealistic returns of up to 20% and unlimited referral commissions.
Click here to read full article.
Investing without the greenwashing
Find out what ESG investing is and how it works. So you can choose investments that match your goals and values.
What ESG means
ESG investing is when a fund considers sustainability (including environmental, social and governance factors) to inform their investment strategy.
There is a growing demand for ESG investing, also known as sustainable (or sustainability-related), responsible or ethical investing.
Click here to read full article.
Scam alert: Fake bill and loan discounts
ASIC is alerting investors about an impersonation scam using email and cold calling tactics
Scammers are making fake offers of 30% discounts on bills and loan repayments
Unless you are dealing directly with the service provider, discount billing and upfront payment offers are often scams.
Scammers are using free email services to falsely impersonate a registered company to make fake discount offers on bills and loan repayments. Discount offers from third parties are often fake, especially when they make the offers by cold calling you.
Click here to read more.
Relationships and money
Making plans to move in with your partner or share finances can be exciting. Knowing your financial and legal responsibilities, and where to get help if you need it, can make your life together run more smoothly.
Click here to read more
Scams Awareness Week 2022: How to spot a crypto scam
Banking and credit scams
If someone you don't know asks for your personal details or offers you a loan, it could be a scam. Scammers can use your personal information to steal your money and run up debts in your name.
Identity theft - Protect your personal information
If your personal information falls into the wrong hands, it can be used to steal your identity.
If you've been affected by the recent Optus data breach, the Office of the Australian Information Commissioner has information on how to respond to a data breach.
The ACCC's Scamwatch has released information on the latest scams arising from the breach.
It's important to:
report the breach to your bank and super fund
change your passwords
be on the lookout for suspicious emails, phone calls, texts or messages through social media
keep close watch on your bank account for any unauthorised transactions
request a temporary ban on your credit report to ensure no unauthorised loans or applications